LG and Samsung are reportedly going to manufacture the screen for the iPhone 7

The iPhone 6s. AP South Korea's LG and the panel-making unit of Samsung will supply organic light emitting diode (OLED) screens for Apple's iPhones, the Electronic Times reported on Wednesday citing unnamed sources.

The report comes after years of speculation that Apple will start using the next-generation technology in its phones. OLED screens are thinner and offer better picture quality than the mainstay liquid crystal display screens.

Japan's Nikkei newspaper reported last month that Apple plans to start using OLED screens for iPhones starting in 2018.

LG and Samsung are close to a final agreement with Apple for the screens, the Electronic Times report said, adding the two Korean firms plan a combined 15 trillion won ($12.8 billion) in capital expenditure to build up OLED production capacity over the next two to three years.

Apple will likely provide some funding to both firms to help with the investments, the paper added.

LG and Samsung declined to comment, while Apple could not be immediately reached for comment.